Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31 December 2021 (the accounting-year end Value() Buildings 300,000 148.000 Transportation element Accumulated depreciation (buildings) at 01/01/2021 52.500 Accumulated depreciation (transportation element) at 01/01/2021 36,800 Salary expense 16,500 Share premium 7:200 Capital 20,000 Retained eamings at 31/12/2020 97,900 Long term debt 190.300 Cash 60.000 Trade receivables 62.500 Inventory at 31/12/2020 40.000 Purchases 10,000 Sales 200,000 Allowance for trade receivables 2,500 Accrued Expenses 19,500 Trade payables 10.300 Required: a) Prepare the Trial Balance corresponding to the above information (marks) b) Considering the following additional information, prepare the income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20.500 on 31/12/2021. 2) The accrued expenses in the trial balance corespond to the electricity expense for the year that has not been paid in the curent accounting penod. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period 3) Non-cument assets are depreciated using the straight-line method Buildings have a residual value of ED and a useful life of 20 years. The transportation element has a residual value of 10,000 and useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance Page 2 of 4 6) On 30/06/2021, Happiness Ltd acquires a cash an insurance for 24 months for 232,400 paid on cash 7) Corporate tax percentage is 19% Draw the journal entries coresponding post (12 marks) Question 2 (15 marka Following the information in Question 1 and addionally considering that C3,000 of purchases v been paid on cash during the currendeunding period 2021, prepare the Statement of Final Position for Happiness Lad on 31/12/201 (1 mark) Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31 December 2021 (the accounting-year end Value() Buildings 300,000 148.000 Transportation element Accumulated depreciation (buildings) at 01/01/2021 52.500 Accumulated depreciation (transportation element) at 01/01/2021 36,800 Salary expense 16,500 Share premium 7:200 Capital 20,000 Retained eamings at 31/12/2020 97,900 Long term debt 190.300 Cash 60.000 Trade receivables 62.500 Inventory at 31/12/2020 40.000 Purchases 10,000 Sales 200,000 Allowance for trade receivables 2,500 Accrued Expenses 19,500 Trade payables 10.300 Required: a) Prepare the Trial Balance corresponding to the above information (marks) b) Considering the following additional information, prepare the income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20.500 on 31/12/2021. 2) The accrued expenses in the trial balance corespond to the electricity expense for the year that has not been paid in the curent accounting penod. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period 3) Non-cument assets are depreciated using the straight-line method Buildings have a residual value of ED and a useful life of 20 years. The transportation element has a residual value of 10,000 and useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance Page 2 of 4 6) On 30/06/2021, Happiness Ltd acquires a cash an insurance for 24 months for 232,400 paid on cash 7) Corporate tax percentage is 19% Draw the journal entries coresponding post (12 marks) Question 2 (15 marka Following the information in Question 1 and addionally considering that C3,000 of purchases v been paid on cash during the currendeunding period 2021, prepare the Statement of Final Position for Happiness Lad on 31/12/201 (1 mark)
